Wal-Mart Stores, Inc.Bentonville, AR, United States (NYSE: WMT)

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Wal-Mart Competition

Now Viewing Wal-Mart's competition in: Discount Stores

Recent Developments

Study Finds Coupons Could Gain Popularity - </strong>A recent survey finds that people expect to use coupons more in a recession. About 45 percent of respondents say that they&#39;re &quot;much more likely&quot; to use coupons during a recession, according to ICOM Information Communications. Consumers under 35 responded most favorably, as did residents of the Midwest, although income wasn&#39;t a differentiating factor. Almost 60 percent of respondents say that their coupon use would increase if they could download a coupon that automatically applies to an electronic frequent shopper card.

Apparel Prices Decline, Affecting Major Product Line - Clothing prices are falling, a concern for the discount store industry, because apparel accounts for about 20 percent of sales. US consumer prices for apparel declined almost 1 percent in February 2008 from a year earlier. Prices for women&#39;s clothing dropped 3.8 percent, but men&#39;s apparel prices were essentially flat, rising less than 0.1 percent.

Personal Care Product Prices Dip Slightly - Consumer prices for personal care products are showing signs of slippage from year-ago levels, affecting a category that accounts for 15 percent of the discount store industry revenue. US consumer prices for cosmetics, perfume, bath, and nail preparations and implements collectively rose less than 0.1 percent in February 2008 compared to year-ago levels. Average annual consumer prices for the products increased 2.3 percent in 2007 from 2006.

Competitive Landscape

Population growth and consumer spending drive demand. The profitability of individual companies depends on efficient supply chain management, effective merchandising, and competitive pricing. Large companies dominate the industry, and enjoy advantages in purchasing, distribution, and marketing. Average annual revenue per worker is $175,000.

Discount Stores Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of the US retail industry, which includes discount stores, is forecast to increase at an annual compounded rate of 4.2 percent between 2007 and 2012.

Retail Industry Growth Level

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.

First Research Opportunity Rating

The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.

  • Demand: Tied to consumer income
  • Need good merchandising
  • Risk: Slowing economy limits spending on non-essentials

Industries Where Wal-Mart Competes

  • Retail
    • Discount & Variety Retail (primary)
    • Consumer Electronics & Appliances Retail
    • Drug Stores & Pharmacies
    • Gasoline Retailers
    • Grocery Retail

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